Do people want support with credit or support with savings? To find out, we ran a framed field experiment amongst women in rural Pakistan that tested directly between the demand for savings and the demand for credit. Inspired by the structure of ROSCAs (rotating savings and credit associations), credit and savings products were randomly offered to the same group of people. Contrary to predictions of standard models, we find high demand for both credit and savings products, with the same individual often accepting both a credit product and a savings product over three experiment waves.
Uzma Azfal; Farah Said. iiG Briefing Paper 25. Microcredit and microsavings: Two sides of the same coin? CSAE Economics Department, University of Oxford, Oxford, UK (2015) 2 pp.